INTRODUCTION

INVESTMENT BANKING
Investment banking is a branch of banking that deals with the development of capital for
other businesses, governments, and other organisations.

 Investment banking typically focuses on raising cash for other businesses,

governments, and other organisations.
 Underwriting new debt and equity securities for all types of firms, assisting in the sale
of securities, and assisting institutions and private investors with mergers and
acquisitions, reorganisations, and broker transactions are all examples of investment
banking activity.
 Investment bankers assist firms, governments, and other organisations with the
planning and management of significant projects' financial components.

 OVERVIEW
Investment banks help establishments and individual financial backers by
guaranteeing new obligation and value protections, aiding the offer of protections, and
working with consolidations and acquisitions, redesigns, and specialist exchanges.
Venture banks likewise give counsel to guarantors on stock issuance and position.

 WHAT ARE INVESTMENT BANKS AND WHAT DO THEY DO?

Investment banks help establishments and individual financial backers by
guaranteeing new obligation and value protections, aiding the offer of protections, and
working with consolidations and acquisitions, redesigns, and specialist exchanges.
Venture banks likewise give counsel to guarantors on stock issuance and position.
 WHAT DOES AN INVESTMENT BANKER DO?
Investment banks utilize venture financiers who help firms, legislatures, and different
associations in arranging and overseeing critical undertakings. They save their clients
time and cash by spotting project risks before they continue. Venture brokers ought
to, in principle, be specialists with their finger on the beat of the current contributing
climate.
(KAGAN, 2021)

Industry Analysis
Knowledge condition Impact
Financial knowledge as estimating how well an individual can comprehend and be certain to
utilize their monetary information settle on a monetary choice. Financial knowledge is the
capacity to oversee monetary issues, while there are business people who start a business yet
have not involved themselves in dealing with the monetary perspectives.
Financial knowledge applicable to financing is the manner by which to raise sufficient capital
that is one of the really contributory elements to private venture achievement. Business
visionaries with monetary information will generally keep extensive business monetary
records, subsequently acquiring an upper hand over rivals who keep no such records, through
their capacity to get to outer subsidizing.
The technique for financing is a basic achievement factor for private ventures. Independent
venture business people will be unable to get from banks by any means or will quite often be
offered horrible loaning conditions. Financing obstructions are viewed as significant
development restricting elements for little measured firm. To acquire satisfactory credit from
a monetary foundation, the availability to adequate monetary data imbalances are snags for
independent company business visionaries.
Demand Conditions
Favourable financing condition puts the focus on a vital segment of the transmission
component that interfaces the essential money related arrangement instruments constrained
by national banks (strategy rates, resource buys and renegotiating activities) to a definitive
goal of conveying the medium-term expansion point. Under pandemic circumstances, two
dangers to the effectiveness of financial strategy can be plainly distinguished.
In the first place, gratings in monetary intermediation might upset the transmission of money
related arrangement driving forces to the financing conditions for key monetary entertainers
(families, firms and governments).
Second, without even a trace of clear forward direction from national banks according to
future money related approach choices, high vulnerability about the way of the infection and
the power of the post-pandemic recuperation might make these financial entertainers hesitant
to focus on huge spending choices.
Life cycle stage
The lifecycle of a product alludes to how that item travels through the commercial centre
from its presentation, reception, and decline. Numerous items become repetitive over the long
run and lose their handiness, prompting their substitution.
Not many items have an unending life expectancy. A straightforward item like cleanser has
changed little since its presentation. Other than a couple of augmentations and changes, the
standard bar of family cleanser has demonstrated strong against interruption.
Product life cycle stages
1. Presentation stage
At the point when an item first hits the racks, it will be an obscure element and it won't have a
lot of market footing. Benefits are regularly low, as the item is attempting to lay out a hang
available.
At this stage, organizations should put a high accentuation on promoting the item. This is on
the grounds that there is no faithfulness or partiality with the item right now. The major
objective is to make purchasers mindful of the item and its advantages.
To the extent that evaluating, organizations can either begin with an excessive cost and lessen
it after some time as their endorsers increment. Or then again, they can begin low and win
portion of the overall industry first, then, at that point, gradually hook back their speculation
through slow cost increments.
2. Development stage
As the item turns out to be more famous over the long run, it is presently in the development
stage. Through informal exchange or due to advertising endeavours, the marketing
projections increment. Economies of scale come in line as unit volumes increment.
Accessibility of the item is expanding, yet there is likewise an expansion in rivalry as copycat
items show up from contenders. In the development stage, buyers see the advantages of your
item and evaluating shouldn't be too low to even think about making the item appealing.
3. Development stage
This is an exceptionally beneficial stage. Promoting costs are down as the item sells itself.
Despite the fact that there is more rivalry, the most grounded players in the market will keep
on ruling as they immerse the market.
Developing item dependability will drive deals. This is the place where organizations ponder
proceeding with the practicality of the item by creating overhauls and elective variants to
guarantee it proceeded with progress.
4. Decline stage
In this stage, deals fall thus does benefit. At this point, rival items have tracked down creative
ways of cutting into the portion of the overall industry of the item. There may be headways in
item innovation that different firms have been exceptional ready to catch.
To get by in the downfall stage, organizations need to deliberately lessen their conveyance
directs in regions where the item can't contend. They need to defend and, surprisingly, cut out
promoting on a perishing item. In the event that an organization picks this second to design
an overhaul, they are as of now past the point of no return.
Capital intensive
Investment banking capital intensive means the ventures that require weighty interest in
buying, keeping up with, and amortizing capital in course of its activities. Capital
concentrated businesses require high volume of creation and a high overall revenue to give
great profit from speculation.
High Rate of Success
Whenever you put resources into a capital-escalated industry, you are putting resources into
an industry that has a generally excellent possibility being fruitful. Organizations that decide
to engage in a capital-concentrated industry do a dumbfounding measure of exploration prior
to reaching out. The enterprises that these organizations get into are commonly ventures that
everybody needs somehow. For instance, the oil business is a capital-serious industry. Oil
organizations realize that they will create a significant gain in return for putting intensely in
their framework. More often than not, an organization that has an adequate number of assets
to engage in a capital-escalated industry won't put that much cash in a conceivably losing
suggestion. These ventures will quite often be as near a "of course" as you can get. Thusly, by
putting resources into these enterprises, there is an awesome opportunity that you will
actually want to make a decent profit from your speculation.

Low Competition
One more benefit of putting resources into a capital-escalated industry is the moderately low
rivalry. In most capital-escalated ventures, there are only a couple of principle players. In this
manner, you don't need to stress over picking some unacceptable organization inside the
business. New organizations seldom engage in capital-serious ventures due to the incredibly
enormous hindrances to passage. This implies that the organizations that are now elaborate
will commonly have the whole market for years to come. You truly don't need to stress over
another organization coming in and acquiring piece of the pie away from the organization
that you have put resources into. In different ventures, this isn't true.

Generally safe of Losing Your Investment

Whenever you put resources into a capital-concentrated industry, you are picking a
speculation that represents an extremely okay of losing your cash. Organizations inside
capital-escalated enterprises have put a significant sum into their framework. Hence, they
have a great deal of resources available. This actually intends that there is an exceptionally
low probability of the organization truly failing. Assuming that times are terrible, they could
just scale back specific pieces of their business and offer resources to get by.

Advertising intensive Industry

Investment banking is tied in with assisting your clients with gaining assets to develop/create
in business. These exchanges are regularly vital to the organization. The role of speculation
of investment banking advertising during these clients' dynamic interaction can represent the
deciding moment your relationship.
The RACE Framework for investment banking: -
We prescribe applying the RACE Structure to make or further develop your financial services
showcasing methodology. Incorporated across plan - reach - act - convert - connect with, our
famous RACE Structure and coordinated showcasing devices guide you through the bit by bit
course of arranging, making due, and enhancing your clients ventures.

The RACE System engages financial services advertisers and directors to open new
information driven experiences, to respond to difficulties and open doors and adjust their
promoting procedure to dominate the opposition, and win more clients.
Investment banking customer relationship management
Client relationship the executives for investment banking advertisers is an easy decision.
Clients looking for venture exhortation today have an abundance of data sources. Google and
Facebook, joined with cell phones and other advanced gadgets, have raised the assumptions
for the nature of speculation banking administrations.

Investment banking marketers must embrace digital technologies

New types of guidance and better approaches to convey that counsel driven by new advanced
stages will proceed to arise, and serious positions will disintegrate while others will reinforce,
making champs and across the business.
While retail financial backers will probably profit from every one of the changes, venture
banking advertisers should decisively advance and embrace computerized innovations to
adjust to these basic moving elements.
We have laid out 2 instances of advanced change for venture banking advertisers to advocate
in their own organizations to accomplish their business development objectives.
Entering Concentrated market
An investment banking is an industry overwhelmed by a couple of huge firms.
The accompanying conspicuous elements of investment banking will empower us to separate
investment banking effectively from other market circumstances;
(I) First, every firm under investment bank must be aware of the responses of the
adversaries. After all there are a couple of firms and what one firm will certainly
impact the others.
(II) A firm doesn't know for specific whether its choices with respect to cost and result
will influence its rivals well or unfavourably. It doesn't realize whether its rivals
will endorse or oppose its choices and how, their responses will be known. Thus,
the investment banking association's interest bend for the item is obviously
uncertain since the conventional suspicion of "taking everything into account"
doesn't have any significant bearing here.

(III) Investment Banking firms resort to different forceful or protective promoting

strategies to build their portion of the market or to forestall a decrease in their
portion of market. They resort to broad notice and deals advancement. There is
serious ad and deals advancement between them, as a matter of fact. Forceful
deals advancement by some incites others to do likewise.

Average size of an investment banks co.

JPMorgan Chase
JPMorgan Chase market cap history and chart from 2010 to 2021. Market capitalization (or
market value) is the most commonly used method of measuring the size of a publicly traded
company and is calculated by multiplying the current stock price by the number of shares
outstanding. JPMorgan Chase market cap as of March 11, 2022 is $380.59B.
Barclay’s capital: -
Barclays market cap history and diagram from 2010 to 2021. Market capitalization (or market
esteem) is the most ordinarily utilized strategy for estimating the size of a public corporation
and is determined by duplicating the current stock cost by the quantity of offers remarkable.
Barclays market cap as of March 11, 2022 is $35.26B.
Goldman Sachs: -
Goldman Sachs market cap history and chart from 2010 to 2021. Market capitalization (or
market value) is the most commonly used method of measuring the size of a publicly traded
company and is calculated by multiplying the current stock price by the number of shares
outstanding. Goldman Sachs market cap as of March 11, 2022 is $109.48B.
Deutsche Bank: -
Deutsche Bank has a market cap of $21.47 Billion. This makes Deutsche Bank the world's
828th most significant organization by market cap as indicated by our information. The
market capitalization, ordinarily called market cap, is the absolute market worth of a public
corporation's extraordinary offers and is normally used to measure how much an organization
is worth.
ICICI Bank: -
ICICI Bank has a market cap of $61.55 Billion. This makes ICICI Bank the world's 250th
most important organization by market cap as per our information. The market capitalization,
ordinarily called market cap, is the absolute market worth of a public corporation's
extraordinary offers and is generally used to measure how much an organization is worth.

Market Analysis
Demographic changes
(a) Generation Based - We have decided to primarily focus on the younger generation
which are millennials and Gen Z the two generations have a lot of purchasing power, and
they might collect $30-68 trillion from the Baby Boomers' "great wealth transfer."
Millennials and Gen Z will drastically impact the business and the future of investing due to
the inevitable intergenerational wealth transfer, their large population, and investment
preferences.
According to numerous research, over 80% of millennials and Generation Z choose financial
assets that are aligned with their beliefs and promote long-term investments. Young investors
value solutions that cater to their ethical and environmental values in addition to merging
their investments with technology. They also expect them to be supplied by organisations
who communicate their acts and policies in a straightforward and transparent manner.
Given this shift, there appears to be a significant potential for organisations that consider a
broader range of stakeholders and are able to match this cohort's sustainability demands.
(b) Gender Based - Gender inequality is not only a significant social issue, but it also has a
significant economic impact. A McKinsey & Company analysis found that attaining gender
equality in the workplace may improve worldwide yearly GDP by $12 trillion by 2025. These
challenges have fuelled much of the rise in a variety of impact-driven investment options that
not only alleviate gender inequality but also create profits due to the quicker economic
growth associated with gender parity.
One strategy that investors can investigate is so-called gender-lens investing1. One that has
gotten a lot of traction in a short amount of time. It is the practise of making financial
investments with the goal of empowering women. It's a strategy for investing that
consciously considers the desire to make a difference in the lives of women, as well as the
potential of their leadership and answers to problems that women may confront. This is
accomplished, according to the Global Impact Investing Network, by investing in:
(i) enterprises that are majority-owned or headed by women
(ii)enterprises that promote workplace equity firms that provide products or services that
significantly benefit the lives of women and girls.
Technological advancements
(a) Artificial intelligence (AI) - While only 15% of financial services businesses (including
investment banks) employ AI-powered technology substantially, over 90% aim to boost AI-
related investments by 2025, according to a recent poll. Investment banks are also using AI
technology at a higher rate than their financial services rivals, according to the research.
In a recent interview with Growth TV, Frazier Miller, COO of Source Scrub, states, "A lot of
the inspiration for these firms has been some of the high-tech industries and firms that are
employing vast amounts of data, machine learning, and AI to be able to drive algorithmic
models."
(b) Decentralized Finance - Many of today's largest institutions, such as Goldman Sachs and
BNY Mellon, are starting to look into how bitcoin and other cryptocurrencies may be used.
Others in the industry are speculating on how blockchain will change the industry as we
know it. One thing is certain: De-Fi is still in its early stages, so it's impossible to predict
exactly how it will disrupt financial technology.
Focusing on producing proprietary market knowledge is one strategy for banks to get ahead
of DeFi in 2022. Data scientists are being hired by leading companies to set up data
warehouses, integrate data from different sources, and develop models that discover
significant insights. In the future, obtaining business and charging higher fees will rely on
precise market projections, scoring systems, and other private resources.
(c) SaaS Sales Models - To accelerate buy-side deals, more investment banks will embrace
these tech-inspired direct sourcing strategies, form business development teams, and install
supporting technology in 2022. Copper Run Bank is one example of a bank that has taken a
page from the book of technology sales and is reaping the rewards.
Copper Run's analysts are in charge of directly sourcing prospects that match with the
investment thesis of the firm's buy-side customers. Rather than doing it by hand, they
invested in the most up-to-date deal sourcing technology to swiftly expose relevant non-
transacted enterprises based on data signals like as staff count and ownership type. As a
result, they've been able to consistently double their number of transaction engagements.
(d) Agile Processes - Traditional deal procedures typically begin with a well-connected
partner making decisions based on previous accomplishments and educated estimates,
establishing a clear chain of command. Others in the organisation use a waterfall method to
ensure that each phase of the process is carried out once a plan has been set in motion.
Analysis and optimization are usually done after the plan has been finished, when it is too
late to change the outcome or priority.
More banks, on the other hand, will flourish in today's fast-paced and turbulent market by
adopting an Agile approach to dealmaking in 2022. Rather than following top-down orders,
these companies will base their goals and objectives on data. Every employee will be held
accountable for being an expert in their field and for using data to evaluate objectives,
priorities, and progress on a regular basis. Teams will collaborate closely to respond swiftly
to new possibilities, spot dangers early on, and enhance theses in real time.
Societal changes
Gender Based
Gender equality has caused a significant shift in society, opening up new opportunities for the
investment banking industry. According to a McKinsey & Company report, attaining gender
equality in the workplace may improve global GDP by $12 trillion per year by 2025.
Investors may want to look at a strategy known as "gender-lens investing. "Impact investing"
is a short-lived phenomenon that has attracted a lot of attention in a short amount of time
investing in order to help women become more financially independent. It is an investment
strategy that considers the desire to make a difference in the lives of women, as well as
leadership potential and answers to difficulties that women may encounter.
(Barclays, 2020)

Virtual initial public offerings

As a result of the pandemic, companies have been compelled to opt for virtual IPOs.
Traditionally, the roadshow and pricing of an IPO takes around two weeks and is based on
face-to-face contact between management and prospective investors. During the epidemic,
automation cut the time in half. Lockdowns also increased the need for remote connections
and transactions. The roadshows and test-the-waters sessions will now be held digitally.
Goldman Sachs has created an artificial intelligence system called "Deal Link" to track the
legal diligence and reports required for a successful IPO.
(IBCA, 2020)

Political and regulatory forces

The financial world is heavily influenced by the actions of governments. Subsidies, taxes, and
regulations may all have an immediate and long-term effect on firms and whole industries.
Under regulation may lead to incompetence, corruption, and even collapse if it isn't
accompanied by overregulation that limits innovation and raises prices. Because of this, it is
hard to predict the exact effects of government regulation on the financial services business,
but the effects are usually long-lasting and wide-reaching.
(Investopedia, n.d.)

1. “The Securities and Exchange Commission”

It was established in 1934 in order to monitor the activities of various market players in both
the primary and secondary markets. Investment banks, for example, are required to register
with the Securities and Exchange Commission. Furthermore, because investment banks are
key actors in the securities market, the Securities and Exchange Commission continues to
monitor their actions. The Securities and Exchange Commission has come to control every
area of investment banking activity over the years. This involves licensing, accounting, and
product offers, among other things.
2. “The Investment Advisers Act”
In 1940, the Investment Advisors Act was enacted to ensure that investors' interests were
protected. Many investment businesses intentionally misled investors before 1940 in an effort
to swindle them. Investor-adviser registration was mandated in the 1940s for all organizations
providing financial advice. In addition, they were liable to fines and penalties if they failed to
comply with regulations set out by the relevant regulating organizations. Investment banks
were also affected by this law since they were required to adhere to the same standards. This
legislation limited the number of fees and commissions that investment advisers could charge
their clients for their services.
3. “SEC Regulatory Powers”
The SEC's powers are an extension of those outlined in Congressional law. The SEC
regulates almost every area of investment banking. “This covers licencing, reporting,
accounting, advertising, remuneration, product offers, filing, and fiduciary obligations.”.
(Investopedia, Investopedia, n.d.)

(managementstudy, n.d.)

Competitor Analysis
Learning Curve
Generally, the learning curve in the Investment Banking Industry is very steep and if
someone wants to become and investment banker, it will take longer than 6 months to learn
everything that is needed which will only lead to getting entry level work. As in an
Investment Bank there are a lot of intricacies to private equity and investing and working
there for a year or two will also lead to an entry level position. (Bressler, n.d.)

Market of Interest
The two main Market of Interest in Investment Banking are-
Mergers & Acquisitions (M&A)
M&A is referred to the consolidation or merger of multiple companies into one or a takeover
by a single company A merger is the joining of two organizations to lay out another element.
At the point when one firm purchase another, however no new organization is framed, this is
alluded to as a procurement.
M&A warning is the method involved with helping partnerships and organizations in finding,
assessing, and shutting organization acquisitions
. In i-banking, this is a critical function. Banks use their broad networks and relationships to
identify opportunities and assist clients in negotiating. Bankers provide advice on both sides
of M&A deals, representing either the "buy-side" or "sell-side" of the transaction. (Careers,
n.d.)
Proprietary trading
Proprietary Trading is the point at which a bank exchanges for its own to make benefit for the
bank. This might involve taking on scientific situations still up in the air and oversaw
boundaries to try not to open the bank to inadmissible gamble levels. The extension of this
part of venture banking as of late has brought about expanding risk-taking and, now and
again, critical misfortunes.
To assist with financing huge scope extension or improvement, approaching significant
measures of capital is basic; offering protections to an assorted gathering of financial backers
and, if important, across numerous business sectors in various nations is a proficient method
for collecting huge amounts of cash without presenting any financial backers to excessive
gamble.
Competitors
The competitive landscape of Investment Banking industry is contributed to by these major
players: -
1. J. P. Morgan Chase – It is the largest bank in U.S and the 4 th largest bank in the
world in comparison of total assets. It is an America based Investment Bank and
financial services holding company and it has its headquarter in New York.
2. Barclays Capital - It is British Investment Bank that has it headquarter in London,
England. It provides advisory, financing and risk management services to major
companies, institutions and government offices. It has offices in more than 28
countries. (ROSENBERG, 2022)
3. Goldman Sachs – It is also a America based Investment Bank that has its headquarter
in New York. It provides services in securities underwriting, asset management,
investment management, securities and prime brokerage. It also is the largest
investment banking enterprise in the world by revenue.
4. Deutsche Bank – It is a Germany based Investment Bank that has its headquarter in
Frankfurt, Germany. It has its presence in 58 countries and is the 21 st largest bank in
the world by comparing assets.
5. UBS – It is a Swiss Investment Bank that also provides financial services and
headquarter in both Zurich and Basel. It is the largest private bank in the world along
with being the largest Swiss bank.
6. Credit Suisse – It is a Switzerland based investment bank and financial services firm
that has its headquarter in Zurich. It provides services in investment banking, private
banking, asset management and shared services and has offices at all the major
financial centers in the world.
7. Morgan Stanley- It’s an America based Investment Bank which also provides
financial services that has it headquarter Midtown Manhattan in New York City. It
has its presence in more than 42 countries and has clients that include Individuals,
Governments, Institutions and Corporations. (Institute, n.d.)

As all the above mentioned companies are particularly successful in their domain they
all try to differentiate themselves based on the expertise in a specific industry or
financial products like Goldman Sachs and Morgan Stanley are well known for their
expertise in the area of TMT practice while Deutsche Bank is topping the U.S. CMBS
issuance league tables, this all is done by hiring talent from various sources laterally,
trying to get into as many deals as possible to rise in the league tables, creating and
pitching financial products that are innovative to their clients. While some investment
banks try to differentiate themselves by occupying a niche segment. For example, a
W.R. Hambrecht focuses on middle market companies looking to issue their equity to
the public, while some smaller banks specialize in certain types of advisory products
such as Restructuring or M&A advisory, risk management or loan syndication.
(KatrinaEllisa, 2011)
(Financial web, n.d.) (Izraylevych, 2021) (Whitney, 2021):- (Panita Rachapaettayakom,
2020) (wallstreetprep, n.d.) (Baron, n.d.) (ZUCCHI, 2022)